Deere & Co. reported fiscal 2024 sales of $51.7 billion, down 16% from $61.3 billion in 2023. Sales in agriculture were down 22%, and sales in construction and forestry dropped 12%. Net income for the year was $7.1 billion, a 30% drop from income of $10.2 billion in 2023.
“Amid significant market challenges this year, we proactively adjusted our business operations to better align with the current environment,” said John May, chairman/CEO, in a statement. “Together with the structural improvements made over the past several years, these adjustments enable us to serve our customers more effectively and achieve strong results across the business cycle.”
Fourth quarter sales dropped 28% for Deere, with construction down 29%.
In its outlook for fiscal 2025, Deere expects construction equipment sales in the U.S. and Canada to be down around 10% with its compact construction sales dropping about 5%. Global roadbuilding, which includes the Wirtgen product line, is expected to remain flat.
Company leaders told analysts to expect further softening in demand for earthmoving equipment in 2025. Although the level of construction work is still “robust” and money designated for government infrastructure spending remaining to be awarded, the company said its customers are facing strong competition is driving down bids and project margins. Elevated interest rates and a re-fleeted rental industry is diminishing near-term equipment demand.
In response, the company will “underproduce” in the first half. Earthmoving production lines in North America will be shut down for approximately. half of the total production days in the first quarter, officials said.
“As we navigate ongoing headwinds across our markets, we remain committed to making meaningful investments in our future while deepening our relationships with customers,” May said.
